REGISTERED NUMBER: 02113380 (England and Wales)

A. & N. LEWIS LIMITED

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 September 2018

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

A R Gentile

A Gooch

G W M White

SECRETARY:

A R Gentile

REGISTERED OFFICE:

Unit 8 Ely Bridge Ind Estate

Wroughton Place

Ely

Cardiff

CF5 4AQ

REGISTERED NUMBER:

02113380 (England and Wales)

AUDITORS:

O'Brien & Partners

Chartered Accountants

& Statutory Auditors

Highdale House

7 Centre Court

Treforest Industrial Estate

Pontypridd

Rhondda Cynon Taff

CF37 5YR

The directors present their strategic report for the year ended 30 September 2018.

REVIEW OF BUSINESS

The annexed financial statements indicate the results for the year along with the financial standing and accounting details of the

company.

The Board is pleased with the outcome for the year. In a testing environment the Company secured and delivered contracts that

provided a higher level of profit than in the previous year.

KEY FINANCIAL HIGHLIGHTS

The company's key financial and other performance indicators during the year were as follows:

Unit

2018

2017

Turnover

£

10,265,290

10,715,902

Gross profit margin

%

23.3

19

Profit before tax

£

1,064,302

622,640

PRINCIPAL RISKS AND UNCERTAINTIES

The business' risks are associated with it's financial instruments as described in the directors' report.

ON BEHALF OF THE BOARD:

A R Gentile - Director

19 March 2019

The directors present their report with the financial statements of the company for the year ended 30 September 2018.

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of £16.25 per share.

The total distribution of dividends for the year ended 30 September 2018 will be £ 650,000 .

FUTURE DEVELOPMENTS

The Company continues to expand its client base and monitor opportunities to utilise its core skill sets.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2017 to the date of this report.

A R Gentile

A Gooch

G W M White

FINANCIAL INSTRUMENTS

The business' principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the business and finance

lease agreements. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a positive bank balance for working capital and the use of a

bank loan for longer term projects. All of the business' cash balances are held in such a way that achieves a competitive rate of

interest. The business makes use of money market facilities where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the

regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of

allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Loans in the current year comprise loans from financial institutions. The interest rate and monthly repayments on the loans from

financial institutions are fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the

payments.

The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are

sufficient funds to meet the payments.

QUALIFYING THIRD-PARTY INDEMNITY PROVISION

The Company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year

and remain in force at the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in

accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected

to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they

are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that

period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's

transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that

the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company

and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of

which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order

to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, O'Brien & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A R Gentile - Director

19 March 2019

Opinion

We have audited the financial statements of A. & N. Lewis Limited (the 'company') for the year ended 30 September 2018 which

comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial

Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements

section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit

of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and

the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in

our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider

whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or

otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are

required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other

information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we

are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not

identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our

opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due

to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern,

disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either

intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is

a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial

statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's

website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.

Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them

in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the

opinions we have formed.

Lewis Van Emden (Senior Statutory Auditor)

for and on behalf of O'Brien & Partners

Chartered Accountants

& Statutory Auditors

Highdale House

7 Centre Court

Treforest Industrial Estate

Pontypridd

Rhondda Cynon Taff

CF37 5YR

19 March 2019

TURNOVER

3

10,265,290

10,715,902

Cost of sales

(7,873,831

)

(8,663,567

)

GROSS PROFIT

2,391,459

2,052,335

Administrative expenses

(1,318,656

)

(1,419,477

)

OPERATING PROFIT

5

1,072,803

632,858

Interest receivable and similar income

297

-

1,073,100

632,858

Interest payable and similar expenses

6

(8,798

)

(10,218

)

PROFIT BEFORE TAXATION

1,064,302

622,640

Tax on profit

7

(179,884

)

(90,515

)

PROFIT FOR THE FINANCIAL YEAR

884,418

532,125

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

884,418

532,125

FIXED ASSETS

Tangible assets

9

194,815

253,321

CURRENT ASSETS

Stocks

10

5,250

5,250

Debtors

11

3,697,207

4,027,836

Cash at bank and in hand

1,333,630

1,111,994

5,036,087

5,145,080

CREDITORS

Amounts falling due within one year

12

(2,713,284

)

(3,068,921

)

NET CURRENT ASSETS

2,322,803

2,076,159

TOTAL ASSETS LESS CURRENT LIABILITIES

2,517,618

2,329,480

CREDITORS

Amounts falling due after more than one year

13

(63,545

)

(110,575

)

PROVISIONS FOR LIABILITIES

18

(5,000

)

(4,250

)

NET ASSETS

2,449,073

2,214,655

CAPITAL AND RESERVES

Called up share capital

19

40,000

40,000

Retained earnings

20

2,409,073

2,174,655

SHAREHOLDERS' FUNDS

2,449,073

2,214,655

The financial statements were approved by the Board of Directors on 19 March 2019 and were signed on its behalf by:

A R Gentile - Director

A Gooch - Director

G W M White - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2016

40,000

1,842,530

1,882,530

Changes in equity

Dividends

-

(200,000

)

(200,000

)

Total comprehensive income

-

532,125

532,125

Balance at 30 September 2017

40,000

2,174,655

2,214,655

Changes in equity

Dividends

-

(650,000

)

(650,000

)

Total comprehensive income

-

884,418

884,418

Balance at 30 September 2018

40,000

2,409,073

2,449,073

1.	STATUTORY INFORMATION

A. & N. Lewis Limited is a private company, limited by shares , registered in England and Wales. The company's registered

number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as

permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

•

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly

owned subsidiaries within the group.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the

financial statements where these judgements and estimates have been made are:

2018

2017

£

Amounts recoverable on contracts

331,175

264,675

The company uses qualified and experienced Quantity Surveyors to calculate the values earned on contracts and the contract

costs to the balance sheet date.

Turnover

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for

goods supplied or services rendered, net of discounts and rebates allowed by the company and excluding value added tax.

Contract turnover is calculated as that proportion of total contract value which revenue generated to date bears to total

expected revenue for that contract. Revenues derived from variations on contracts are recognised only when they have been

accepted by the customer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

20% on reducing balance

Motor vehicles

-

25% on cost

Computer equipment

-

33% on reducing balance

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving

items.

Contracts work in progress

Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable

certainty. The profit included is calculated on a prudent basis to reflect the proportion of work carried out at the year end by

recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract

value which revenue generated to date bears to total expected revenue for that contract. Revenues derived from variations on

contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all

contracts in the period in which they are first foreseen.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income,

except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively

enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in

which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted

or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be

recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire

purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over

their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the

future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Employee benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are

charged to profit or loss in the period to which they relate.

Employee benefits such as paid holiday arrangements and contributions to defined contribution pension schemes are

recognised as an expense in the period in which they are incurred.

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event,

it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be

made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using

a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The

increase in the provision due to passage of time is recognised as interest expense.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

30.9.18

30.9.17

£

£

Work done

10,235,682

10,697,097

Other sales income

29,608

18,805

10,265,290

10,715,902

4.	EMPLOYEES AND DIRECTORS

30.9.18

30.9.17

£

£

Wages and salaries

2,425,713

2,516,473

Social security costs

245,417

270,266

Other pension costs

21,903

16,147

2,693,033

2,802,886

The average number of employees during the year was as follows:

30.9.18

30.9.17

Directors

3

3

Administrative and support

15

16

Site staff

63

64

81

83

30.9.18

30.9.17

£

£

Directors' remuneration

278,443

333,187

Directors' pension contributions to money purchase schemes

1,797

1,092

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

30.9.18

30.9.17

£

£

Emoluments etc

93,956

115,037

Pension contributions to money purchase schemes

599

364

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.9.18

30.9.17

£

£

Hire of plant and machinery

448,384

497,238

Depreciation - owned assets

28,794

8,435

Depreciation - assets on hire purchase contracts

26,994

49,225

Profit on disposal of fixed assets

(4,625

)

(5,200

)

Auditors' remuneration

8,300

7,450

Auditors' remuneration for non audit work

1,500

3,018

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.9.18

30.9.17

£

£

Bank interest

3,439

3,682

Hire purchase

5,359

6,536

8,798

10,218

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30.9.18

30.9.17

£

£

Current tax:

UK corporation tax

179,884

90,515

Tax on profit

179,884

90,515

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.9.18

30.9.17

£

£

Profit before tax

1,064,302

622,640

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19%)

202,217

118,302

Effects of:

Expenses not deductible for tax purposes

506

739

Depreciation in excess of capital allowances

6,279

4,839

Profit on disposal of assets

(879

)

(988

)

Group relief

(28,239

)

(35,601

)

Change in corporation tax rates

-

3,224

Total tax charge

179,884

90,515

During the year the UK corporation tax rate has remained at 19% . Further reductions to the UK corporation tax rates have

been enacted. These reduce the main rate to 17% from 1 April 2020.

8.

DIVIDENDS

30.9.18

30.9.17

£

£

Interim

650,000

200,000

9.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 October 2017

139,375

49,404

316,735

31,379

536,893

Additions

-

-

-

505

505

Disposals

-

-

(24,239

)

-

(24,239

)

At 30 September 2018

139,375

49,404

292,496

31,884

513,159

DEPRECIATION

At 1 October 2017

-

49,404

209,867

24,301

283,572

Charge for year

-

-

53,380

2,408

55,788

Eliminated on disposal

-

-

(21,016

)

-

(21,016

)

At 30 September 2018

-

49,404

242,231

26,709

318,344

NET BOOK VALUE

At 30 September 2018

139,375

-

50,265

5,175

194,815

At 30 September 2017

139,375

-

106,868

7,078

253,321

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 October 2017

165,499

Transfer to ownership

(100,709

)

At 30 September 2018

64,790

DEPRECIATION

At 1 October 2017

82,083

Charge for year

26,994

Transfer to ownership

(82,083

)

At 30 September 2018

26,994

NET BOOK VALUE

At 30 September 2018

37,796

At 30 September 2017

83,416

10.

STOCKS

30.9.18

30.9.17

£

£

Stocks

5,250

5,250

11.

DEBTORS

30.9.18

30.9.17

£

£

Amounts falling due within one year:

Trade debtors

1,774,736

1,973,743

Amounts owed by group undertakings

400,000

300,000

Amounts recoverable on contract

331,175

264,675

Prepayments

16,219

22,293

2,522,130

2,560,711